Abstract

The growth of online daily deal price promotions and the resulting consumer non-redemption ofdaily deal coupons is worthy of understanding from a psychological lens of non-consumption.Whereas there is an emerging literature on daily deals and established literature on barriers toredemption, there exists a gap in where this scholarship intersects. This research provides aconceptual model explaining why consumers purchase daily deal coupons and do not redeemthem. We explain consumers’ reasons for buying a daily deal upfront along with their reasons fornot using it from theoretical lenses of reasons theory and social motivations theory. On testingthe model empirically with qualitative and deepening insight via quantitative methods, thefindings reveal that reasons for purchasing daily deals are rooted in individual consumer levelfactors (i.e., price-consciousness, buying impulsiveness, and susceptibility to interpersonalnormative influence). Further, reasons for non-redemption are explained by contextual elementsof the daily deal (i.e., offer distinctiveness, the total number of daily deals sold, restrictions onusing the deal, and low discount size). Our findings suggest that post-purchase regret ultimatelyexplains a key reason deals go unused. Marketing implications are offered in the areas ofcharacteristics of daily deal offers.

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